NZD/USD Technical Analysis: Focus Remains on 0.76 Figure
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- NZD/USD Technical Strategy:Flat
- Support: 0.7506, 0.7444, 0.7340
- Resistance:0.7608, 0.7680, 0.7760
The New Zealand Dollar continues to tread water below support-turned-resistance near the 0.76 figure against its US namesake. Near-term resistance is at 0.7608, the December 9 low, with a break above that on a daily closing basis exposing the intersection of the December 18 bottom and a rising channel top at 0.7680. Alternatively, a turn below channel floor support at 0.7506 opens the door for a challenge of the 23.6% Fibonacci expansion at 0.7444.
Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests that taking up the short side is premature. With that in mind, we will remain flat for now.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com